Michigan iPod scammer gets hit with criminal charges

If you're already facing a civil suit from a company like Apple, the penalties are usually limited to things like damages and injunctions. If you're in that situation, what you really don't want to see next is a criminal suit with stiffer penalties, but that's just what one Michigan man is now facing. According to the Associated Press, prosecutors in Michigan have filed criminal charges against iPod scammer Nicholas Woodhams, alleging that he committed fraud and laundered money as a part of his scam.

Apple originally filed charges against Woodhams last July, alleging that he manipulated the company's warranty system in a variety of ways in order to scam free iPods. By guessing at valid iPod serial numbers and using credit cards that wouldn't accept charges, Woodhams was apparently able to illegally obtain about 9,000 iPod shuffles via the advance replacement program, which he then sold as new units at a lower price of $49. Woodhams also got Apple to replace out-of-warranty iPods by swapping their back casings with casings from in-warranty units.

According to attorney Randall Levine, Woodhams didn't "fully appreciate the seriousness of the situation." No kidding. The government would like to seize real estate, money, vehicles, and computers from Woodhams, who is currently working on "negotiating a resolution" with the government. As far as Apple's case goes, the company is waiting to see what happens with the criminal charges, after which it may continue on with its own civil case against Woodhams.

They guy illegally moves over a thousand wrongfully obtained pieces of equipment, and doesn't realize he's doing wrong? Oh please. And I'm in Michigan, even unemployed at the moment, but I would NEVER consider doing what this guy did.

I live in Michigan too, just got laid-off. But this, I agree, is ridiculous. I don't think it has much to do with the recession, though. How many ipods per day for how many years would it take to accumulate 9,000 total? Quite a lot of work or quite a few years...